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6 Sep 2014

Philadelphia Gas Works announces decrease in natural gas costs this fall

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September 6, 2014 Category: Local Posted by:

Average PGW residential heating customers will pay nearly 7 percent less per month

Philadelphia Gas Works (PGW) announced that natural gas rates will decrease this fall for PGW’s residential, commercial, industrial and municipal customers. The new rate reflects what PGW pays for the gas. The rate for residential customers, for instance, will be adjusted for the next three months from its current $1.51 per hundred cubic feet (Ccf) to $1.40 per Ccf for residential customers.

On an annualized basis, the average residential customer using 850 Ccf, will lower their PGW bill by approximately 6.9 percent per month and equates to savings of $99 per year.

PGW reviews its gas rate quarterly and determines, based on market conditions, whether it should change. The new rate began September 1, 2014 and will stay in effect through November 30, 2014.

PGW’s residential natural gas rates are made up of two main components: a supply charge and delivery charge:

The supply charge is the part of the bill that reflects the amount of gas used by the customer. This charge is what PGW pays for the gas and is passed on to the customer without markup.

The delivery charge includes the cost of delivering natural gas to the customer’s residence, distribution system maintenance and customer billing costs, as well as weather adjustments.  

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